Process selection choices often have strategic implications for organizations. They can affect cost, quality, productivity, customer satisfaction, and competitive advantage. Process types include job shop, batch processing, repetitive processing, continuous processing, and projects. Process type determines how work is organized, and it has implications for the entire organization and its supply chain. Process type and layout are closely related. Layout decisions are an important aspect of the design of operations systems, affecting operating costs and efficiency. Layout decisions are often closely related to process selection decisions.
Product layouts are geared to high-volume output of standardized items. Workers and equipment are arranged according to the technological sequence required by the product or service involved.
Emphasis in design is on work flow through the system, and specialized processing and handling equipment is often used. Product layouts are highly vulnerable to breakdowns. Preventive maintenance is used to reduce the occurrence of breakdowns. Process layouts group similar activities into departments or other work centers. These systems can handle a wide range of processing requirements and are less susceptible to breakdowns.
However, the variety of processing requirements necessitates continual routing and scheduling and the use of variable-path material-handling equipment. The rate of output is generally much lower than that of product layouts.
Fixed-position layouts are used when size, fragility, cost, or other factors make it undesirable or impractical to move a product through a system. Instead, workers, equipment, and materials are brought to the product. The main design efforts in product layout development focus on dividing up the work required to produce a product or service into a series of tasks that are as nearly equal as possible.
The goal is to achieve a high degree of utilization of labor and equipment.
In process layout, design efforts often focus on the relative positioning of departments to minimize transportation costs or to meet other requirements concerning the proximity of certain department pairs. The large number of possible alternatives to layout problems prevents an examination of each one. Instead, heuristic rules guide discovery of alternatives. The solutions thus obtained are usually satisfactory although not necessarily optimal. Computer packages are available to reduce the effort required to obtain solutions to layout problems, but these too rely largely on heuristic methods.